TY - JOUR
T1 - A transparency Disclosure Index measuring disclosures
T2 - Chinese listed companies
AU - Cheung, Stephen Y L
AU - Jiang, Ping
AU - TAN, Weiqiang
N1 - Copyright:
Copyright 2010 Elsevier B.V., All rights reserved.
PY - 2010/6
Y1 - 2010/6
N2 - This study addresses the question whether transparency matters among Chinese listed companies. We construct a comprehensive scorecard, based on the OECD Principles of Corporate Governance, in order to assess the transparency of 100 major Chinese listed companies. Based on the scorecard, we construct a Transparency Index (TI) which is used to assess these major Chinese listed companies during 2004-2007. The results reveal that there is a positive and significant relation between company transparency and market valuation. When we further split the TI into Mandatory and Voluntary Disclosure Indexes, it is found that market valuation is only related to the Voluntary Disclosure Index. Finally, we find that more profitable, overseas-listed, and companies with a separate CEO and board chairman tend to disclose more on a voluntary basis.
AB - This study addresses the question whether transparency matters among Chinese listed companies. We construct a comprehensive scorecard, based on the OECD Principles of Corporate Governance, in order to assess the transparency of 100 major Chinese listed companies. Based on the scorecard, we construct a Transparency Index (TI) which is used to assess these major Chinese listed companies during 2004-2007. The results reveal that there is a positive and significant relation between company transparency and market valuation. When we further split the TI into Mandatory and Voluntary Disclosure Indexes, it is found that market valuation is only related to the Voluntary Disclosure Index. Finally, we find that more profitable, overseas-listed, and companies with a separate CEO and board chairman tend to disclose more on a voluntary basis.
KW - China
KW - Corporate Governance
KW - Disclosure
KW - OECD Principles
UR - http://www.scopus.com/inward/record.url?scp=77953542637&partnerID=8YFLogxK
U2 - 10.1016/j.jaccpubpol.2010.02.001
DO - 10.1016/j.jaccpubpol.2010.02.001
M3 - Journal article
AN - SCOPUS:77953542637
SN - 0278-4254
VL - 29
SP - 259
EP - 280
JO - Journal of Accounting and Public Policy
JF - Journal of Accounting and Public Policy
IS - 3
ER -